Autonomous mobility company Zoox, an independent subsidiary of e-commerce giant Amazon, revealed its first fully-functional, self-driven electric vehicle.
The vehicle, which can carry four passengers, can move bidirectionally and is designed for busy city roads, the company said. It is a purpose-built robo-taxi that combines artificial intelligence, robotics, advanced vehicle engineering and sustainable energy.
Here are some details about the new prototype, its features and what to expect.
What is Zoox?
Founded in 2014, the California-based company is a developer of self-driving cars and is currently working to design autonomous ride-hailing vehicles. The company raised $1 billion and was valued at $3.2bn after a 2018 funding round.
In June, Amazon agreed to buy Zoox for more than $1bn. The Washington-headquartered company is reportedly working with Zoox to create a ride-hailing fleet to compete with Waymo, the self-driving industry leader backed by Alphabet. Industry analysts said Amazon can also use automated cars to deliver goods to customers.
Other Zoox investors include Breyer Capital, the Canada Pension Plan Investment Board, Lux Capital, Draper Fisher Jurvetson and Australian billionaire Mike Cannon-Brookes.
How does the new prototype work?
Zoox said its autonomous EV is created for dense, urban environments. Designed and manufactured in the US, the robo-taxi is capable of operating at more than 120 kilometres per hour in both directions. It features a four-seat, face-to-face symmetrical seating configuration.
The new vehicle marks an important step towards deploying an autonomous ride-hailing service, said Aicha Evans, Zoox chief executive.
“As we see the alarming statistics around carbon emissions and traffic accidents, it’s more important than ever that we build a sustainable, safe solution that allows riders to get from point A to point B,” Ms Evans said.
Bidirectional driving capabilities and four-wheel steering allow the vehicle to cruise through compact spaces and change directions without reversing.
How safe is it?
The vehicle comes with more than 100 new safety innovations, the company said.
These include an advanced airbag system for bidirectional vehicles and carriage seating that envelops passengers on all four seats, offering crash safety protections. There is a unique sensor architecture that combines cameras, sensors and radars to get a 270-degree view from all four corners of the vehicle, eliminating blind spots.
“Safety is the foundation of everything we do. Building a vehicle from the ground-up has given us the opportunity to reimagine passenger safety,” Jesse Levinson, Zoox’s chief technology officer, said.
How big is the battery?
At 3.63 metres long, the vehicle comes with 133 kilowatt-hour battery, one of the largest available in autonomous vehicles today, allowing it to operate for up to 16 continuous hours on a single charge.
How much does it cost?
Zoox, which is currently testing its vehicles in Las Vegas, San Francisco and other Bay Area locations in the US, has not disclosed the price of the new prototype or the expected date of its commercial roll-out.
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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”